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Major Asian stock markets have opened the day on a mixed note. The stock market in China is trading lower by 0.3%. However, stock markets in Hong Kong and Singapore are trading higher by 0.8% and 0.2% respectively. Major indices in Europe and US ended their previous session in red. The rupee is trading at 67.05 per US$.
Indian stock markets have too opened the day on a flattish note. The BSE Sensex is trading lower by 5 points (down 0.02%) and NSE Nifty is trading higher by 17 point (up 0.2%). BSE Mid Cap is trading lower by 0.1%. Whereas, BSE Small Cap is trading higher by 0.1%. Barring pharmaceutical and banking sector, major sectoral indices have opened the day in green. The stocks from oil & gas and capital goods space are witnessing maximum buying interest.
As per an article in Livemint, Union Cabinet has cleared a proposal to amend the mines and mineral law. As per these amendments, the law now allows the transfer of captive mines granted through non-auction route. Earlier the act, allowed transfer of the mining license only for the mines that have been auctioned. Most of the operational limestone mines in India were allotted and not auctioned. This also hindered the mergers and acquisition activities in the cement space.
Amendment of this clause is likely to spur mergers and acquisitions in the cement industry. Given that limestone is a key raw material in the cement-making process, it is difficult to execute the sale of a cement unit without selling the related limestone mines as part of the deal.
Reportedly, cement sector will be the early beneficiaries to the amendment apart from other mining related sectors. Ultratech had recently entered into deal with Jaiprakash Associates for acquisition of 22 million tonne cement capacity. The revised act clears an important hurdle for UtraTech Cement's acquisition of Jaiprakash Associates cement capacity.
In another news update, Hero Motocorp inaugurated its first integrated research and development (R&D) center.
In the erstwhile joint venture between the company and the Hondo Motors, the latter did all the R&D work compromising of concept design, sketch generation, clay modeling, engineering design and prototype design. As Hero Motocorp was previously never involved in such activities it raised doubts after the separation with regards to Hero's ability to introduce products that would be able to compete in terms of technology and cost with its global and local rivals. However, the company has been able to witness remarkable growth considering slowdown in economy and rise in competition.
With the new R&D facility, the company would be able to bring better products. Reportedly, the facility will also help the company to save money on product developments as its plans to localize a lot of technology that it currently brings from the overseas partner at high cost.
The new facility boasts of a 16 kilometer long track with 45 different surfaces spread across a 250 acre plot. In addition to this, it has a design studio, prototype manufacturing, testing and validation unit. The stock of Hero Motocorp is trading higher by 0.5%.
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